Daily market review

United States

Equities ended a volatile session mixed with losses in energy and financials hitting value stocks, and growth stocks mostly bouncing back as investors shifted out of cyclicals at month end. The Dow Jones industrial average fell 1.5 percent, the S&P 500 slipped 0.5 percent and the NASDAQ composite gained 0.6 percent.

Financials, energy, and materials lagged the most as investors shifted back out of these into growth stocks. Technology, which has been hit lately by valuation concerns, were back in favor as buyers appeared at the lows and as bond yields fell back sharply from recent highs.

Energy was hit hardest, along with banks, as oil prices fell back and the yield curve flattened. Tobacco and beverages dragged down consumer staples, and materials were hurt by a retreat in metals prices. Industrials lagged, along with health care. Holding up well were consumer discretionary, including homebuilders. Tech led the winners, with Apple, up 0.2 percent, back on top. Mega-caps helped communications services outperform.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil declined 81 cents to US$66.13 while spot gold fell US$39.43 to US$1,732.51. The US dollar was mostly higher vs. major currencies. The US Treasury 30-year bond yield dropped 16 basis points at 2.14 percent while the 10-year note yield fell 9 basis points to 1.43 percent.


Equities slipped Friday as sectors that rallied lately on recovery hopes led the selloff, while bond yields fell back. The Europe-wide STOXX 600 fell 1.6 percent, the German DAX fell 0.7 percent, the French CAC lost 1.4 percent, and the FTSE 100 was down 2.5 percent.

Among sectors, energy and basic resources lagged, along with banks, industrials, food & beverage, personal & household goods, and real estate. Holding up best though mostly weaker were autos & parts, chemicals, health care, utilities, retail, and travel.

UK stocks lagged as a selloff in energy and commodity-linked sectors weighed on the market, with oil supermajor Royal Dutch Shell down 3.3 percent and Anglo American, the miner, down 6.1 percent.

Among companies, Proximus, the Belgian telecom, fell 10.9 percent on disappointing quarterly results. On the positive side, Compagnie Saint Gobain, the French materials giant, rose 3.1 percent on an earnings beat.

Asia Pacific

Global equities extended their Wall Street selloff into the Asian hours Friday as investors appeared rattled by the speed of the rise in bond yields and growth stocks were hit hardest.

China's Shanghai Composite Index dropped 2.1 percent and the CSI300 index fell 2.4 percent on the rise in interest rates, with technology and other growth sectors hit hardest. These highly-valued sectors appeared most vulnerable to valuation concerns, though the selloff was across the board. Risk appetite was also hurt by worries over US-China relations as US Trade Representative Katherine Tai pressed China to deliver on its phase one trade commitments and appeared to signal continued support for steep tariffs on Chinese goods.

Hong Kong tracked other markets lower, with the Hang Seng index down 3.6 percent, as tech and property sectors lagged. Japanese stocks saw similar losses with the Nikkei down 4 percent and the broader Topix off 3.2 percent. SoftBank was a notable loser, off 4.5 percent.

The Korean KOSPI dropped 2.8 percent with tech heavyweights Samsung Electronics and SK Hynix off 3.3 percent and 4.7 percent, respectively.

Australian stocks ended sharply lower with the All Ordinaries off 2.3 percent on the bond market rout, with the Reserve Bank of Australia intervening to buy Australian 3-year notes in a bid to steady the market. All sectors lost at least 1 percent. Worst off were tech, retail, health care, and materials. Iron ore miners lagged as BHP fell 2.6 percent.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

Looking forward